Bitcoin is encountering significant resistance near $20,000. The No.1 cryptocurrency remains under pressure from the US dollar, which continues to rise to new multi-year highs. Market sentiment is also clouded by bearish sentiment and uncertainty as buyers urgently need to draw a line under the $20,000 psychological level. BTC has not posted a winning day since October 6th. The BTC/USD pair has remained within the $20,000 range for two weeks. The momentum indicators also currently suggest that BTC’s near-term risks remain tilted to the downside, waiting for developments that could provide fresh directional impetus. There are concerns that if Bitcoin (BTC) does not renew its buying trajectory, the result could be another exodus under the $17,000 zone. Bitcoin whales are accumulating more of the asset as Bitcoin spot trading dominance has recently increased dramatically. According to a new report by Ki Young Ju, CEO of CryptoQuant, since Bitcoin price hit the $20k level, Binance spot trading volume dominance has skyrocketed, and it’s now 84%. The second biggest is Coinbase, at 9%. In the last six months, BTC exchange volumes for spot trading have grown by over 2000%, with a 20x increase.
Key Levels
Resistance Level: $25,000, $22,000, $20,000
Support Levels: $19,000, $17,000, $15,000
BTC/USD Daily ChartBTC/USD has gained about 0.30 percent since briefly trading above $19,000 at the end of the week. In a consolidation battle, the pair trades within a straight line as it waits for a breakout. The BTC/USD pair does appear to trade laterally as a result of the broad USD concern.
A decline below the level of $20,000 will be viewed in a broader context as a component of the trend from the level of $25,214. After reaching the major support (low) level of $18,000, it was supposed to end at that level, or $17,567. The $17,567-level recovery phase might be extended to a $30,000 resistance level on a breach of the $ 25,000 level.
BTC/USD 4-Hour ChartThe intraday BTC/USD bias is still neutral, and the trend is unchanging. The corrective trend started below the level of $19,000 and can keep gaining momentum. If it breaches the $18,000 short-term support level, the bias may shift to the negative, and it will likely go below the $17,567 yearly low level.
Overall, though, there was a flip from $18,659 to $19,254 towards the 4-hour moving average (MA 50). on the other hand, a test at the lower level of $17,000 may aim to exceed the yearly low level of $17,567. Simply said, trading in short- to medium-term ranges will continue for a while longer near the level of $19,000/$20,000.
Note: Kryptomoney.com is not a financial advisor. Do research before investing your funds in any financial asset, presented product, or event. We are not responsible for your investing results
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
